Race to seal JJB clubs deal

ADVISERS are working around the clock to tie up a deal for JJB Sports founder Dave Whelan to buy back its 52 health clubs and secure the future of the embattled Wigan retailer. Sources said experts spent the entire weekend in a race against time to finalise the details of the £70m deal, which is expected to be completed by the middle of this week.

ADVISERS are working around the clock to tie up a deal for JJB Sports founder Dave Whelan to buy back its 52 health clubs and secure the future of the embattled Wigan retailer.

Sources said experts spent the entire weekend in a race against time to finalise the details of the £70m deal, which is expected to be completed by the middle of this week.

Mr Whelan, who founded JJB in the 1970s and sold his stake in 2007, was granted exclusivity over the gyms business after beating off interest from rival chains and private equity bidders.

Once the takeover is completed, it is understood he will rebrand the health clubs as DW Fitness . Last week, JJB was given more time to secure the sale after an agreement with lenders expired.

The chain has debts of around £60m and will use the proceeds of the sale to wipe them out.

JJB has been granted breathing space until tomorrow to complete the sale, which will safeguard the company's future, protecting around 12,000 jobs.

Mr Whelan's acquisition of the clubs - which are profitable - has been made possible by Treasury intervention. Millions of pounds of his personal fortune were on deposit with the collapsed Icelandic bank Kaupthing , but the Treasury ensured the funds would be available to him.

A source close to JJB said: "Everyone has been pulling together to ensure the deal goes through and ensure the company's future.

"This will be the biggest corporate rescue of this recession."

In addition to buying the health clubs, Mr Whelan may take over adjoining JJB stores.

Meanwhile, JJB is looking to complete the next piece of its survival jigsaw, by striking a deal with landlords to offload around 30 empty shops.

The rescue plan is being spearheaded by former Next boss Sir David Jones, who was appointed chairman of JJB late last year. Earlier this year, the chain put into administration its Qube and Original Shoe Company divisions. Meanwhile, the future of suspended chief executive Chris Ronnie is expected to be resolved soon.